Starwood Capital Group Completes Acquisition of TMI Hospitality

January 30, 2015

GREENWICH, CONNECTICUT/FARGO, NORTH DAKOTA (January 30, 2015) –Starwood Capital Group (“Starwood Capital”), a leading global private investment firm, and TMI Hospitality, Inc. today announced that Starwood Capital, through a controlled affiliate of Starwood Global Opportunity Fund X, has closed on the acquisition of all of the outstanding stock of TMI Hospitality from the TMI Hospitality Employee Stock Ownership Plan. The acquisition, originally announced in June 2014, includes 181 hotels, the management company and the development platform.

“We are very happy to be acquiring such an outstanding group of assets, and look forward to continuing to grow the company through continued investments and new development,” said Barry Sternlicht, chairman and CEO of Starwood Capital Group. “Starwood is committed to the company’s future growth with 12 hotels currently under construction and another seven projects in the pipeline.”

“With Starwood Capital, TMI Hospitality will continue to expand on our reputation for developing and operating outstanding hotels around the country,” said Lauris Molbert, CEO of TMI Hospitality. “TMI looks forward to fulfilling its mission of impressing guests and a bright future with Starwood Capital.”

Starwood Capital and its investors currently own 115 select-service hotels covering two-thirds of the United States. Following the close of the acquisition, the firm will control over 300 select-service and extended stay hotels across 39 states in the United States.

TMI Hospitality is a developer, owner and operator of more than 180 select-service and extended-stay hotels and employs more than 4,000 team members across 25 states. TMI’s headquarters will remain in Fargo, North Dakota.

Citigroup Global Markets Inc. acted as lead financial advisor to TMI Hospitality and Butcher Joseph Hayes also acted as financial advisor to TMI. Hentschel & Company provided a fairness opinion to TMI Hospitality’s Board of Directors. Morrison & Foerster LLP and Morgan, Lewis & Bockius LLP are serving as legal counsel to TMI Hospitality. Starwood Capital received legal counsel from Latham & Watkins LLP and financial advice from BofA Merrill Lynch and Barclays.


About Starwood Capital
Starwood Capital Group is a private investment firm with a core focus on global real estate. Headquartered in Greenwich, CT, the Firm maintains 12 offices in six countries around the world. Starwood Capital Group has raised more than $30 billion of equity capital since its inception in 1991, and currently manages over $38 billion in assets. The Firm has invested in virtually every class of real estate on a global basis, opportunistically shifting geographies and changing positions in the capital stack as risk-reward dynamics evolve. For more than two decades, Starwood Capital Group and its affiliates have successfully executed an investment strategy that involves building enterprises around real estate portfolios in both the private and public markets. Additional information can be found at starwoodcapital.com.

About TMI Hospitality
Headquartered in Fargo, North Dakota, TMI Hospitality is a developer and operator of more than 180 select service and extended stay hotels across 25 states. The multiple divisions of TMI support the expanding portfolio through development, construction, services and management of its hotels. More information is available at www.tmihospitality.com.